Illinois Tax 2025: Guide to Income, Sales, Property, and Retirement Taxes

If you must make estimated tax payments, we encourage you to use an electronic payment option. If you choose to pay by check or money order, must complete Form IL-1040-ES, Estimated Income Tax Payments for Individuals, and mail it with their estimated tax payments. For those who owe taxes, Illinois offers several payment options, including electronic funds transfer (EFT), credit or debit card payments, and paper checks. EFT payments made through MyTax Illinois are typically processed within one to two business days, while credit card transactions may incur additional processing fees.

Tax on online sports betting

Those with multiple income streams or business interests in different parts of the state should be aware of these additional levies. Short term rental business owners are responsible for paying the tax, but may pass the cost along to their guests. The hotel tax is on https://elearning.buscarv.com.mx/journal-entries-examples-with-pdf/ top of other state and local lodging taxes already in effect for short-term rentals. Bankrate.com is an independent, advertising-supported publisher and comparison service.

Illinois State Tax Income: What You Need to Know

If you eFile your taxes, you can expect to receive your income tax refund sooner and will be able to get instant verification of your tax return submission. The chart on the next page outlines the sales tax what are the taxes in illinois rate for each jurisdiction that has imposed a change in local sales tax rates collected by IDOR, effective July 1, 2025. Illinois’s state income tax rate of 4.95% flat rate affects your take-home pay along with federal taxes. Employers withhold Illinois income tax based on state withholding tables.

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• If you receive a notice from us that has a Collection ID in the upper right corner, indicating your balance has reached Collections, you may be eligible to apply for a payment plan.
• If you eFile your taxes, you can expect to receive your income tax refund sooner and will be able to get instant verification of your tax return submission.
• Online gaming operators in Connecticut must partner with an approved master gaming operator to legally offer services.
• Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
• Some tax rates are the same for all taxpayers (fixed rates) and some are determined by location (location-based).
• Understand Illinois state income tax requirements, including filing obligations, tax rates, available credits, and payment options to stay compliant.

Supplemental wages are taxed at the same rate as regular income in Illinois. If you file your taxes as single, any earnings you make in excess of $200,000 will be subject to an additional 0.9% Medicare tax, which is not matched by your employer. Joint filers making over $250,000, and married individuals with more than $125,000 filing separately, also pay the Medicare surtax. Illinois has a flat income tax of 4.95%, which means everyone’s income in Illinois is taxed at the same rate by the state.

• Return — Your Form IL-1040 filing period is the same as your federal filing period.
• The percentage that’s withheld will depend on things such as your income, your filing status (single, married filing jointly, etc.) and any tax credits you indicate on your W-4 form.
• The same items of general merchandise reported on Line 4a of Forms ST-1 and ST-2 that are subject to State sales tax are also subject to the locally imposed sales tax.
• Compare job offers by calculating the actual take-home pay for each position, accounting for Illinois’s tax structure.
• If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference.
• Income tax deductions are expenses that can be deducted from your gross pre-tax income.

Additional option to pay

• For details on specific deductions available in Illinois, see the list of Illinois income tax deductions.
• Want worked examples specific to Chicago, taxable liability calculators, or breakdowns for business income apportionment?
• This comprehensive guide embeds all rate data for tax year 2025 and shows how to calculate what matters for residents, retirees, businesses, and executors.
• Unlike the rest of the state of Illinois, Chicago’s minimum wage increases happen annually on July 1.

To e-file your Illinois and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies. Illinois has no state tax on inheritance, but you are required to file on all estates of $4 million or more. For most individuals, estimated payments are due April 15th, June 15th, September 15th, and January 15th of the following year. For individuals using fiscal year reporting, payments are due on the 15th day of the fourth, sixth, and ninth months of the fiscal year, and of the first month after the end of the fiscal year.

• The current statutory interest rate on unpaid tax liabilities is 1% per month.
• The minimum wage increases are part of the One Fair Wage Ordinance approved in 2023 to eventually bring tipped wages up and in line with the same minimum wage as all other city workers.
• For families, students, and workers considering a move to Illinois, the flat income tax rate offers simplicity but may not lower your overall tax burden due to other state taxes.
• Bankrate.com is an independent, advertising-supported publisher and comparison service.
• There is, however, a convenience fee for the use of a credit or debit card when paying your taxes.

Compare job offers by calculating the actual take-home pay for each position, accounting for Illinois’s tax structure. If you have more than one job, you’ll need to split your allowances between your jobs. You can’t claim the same allowances with more than one employer in a single tax year.

Property Assessment and Valuation

While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement. Whatever your age, there’s a lot to appreciate about life in Illinois, and you should now have a clearer idea of whether this state might Outsource Invoicing be affordable to/suitable for you in terms of applicable tax liabilities. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed. The state of Illinois collects 66.5 cents for every gallon of regular gasoline.